Chase’s New SMB Offerings Point to Appeal of Ad Hoc Real-Time B2B Payments

In B2B interactions, faster payments — especially ad hoc payments — may prove to be a competitive advantage.

PYMNTS Intelligence found that non-recurring payments represent roughly a quarter of total accounts payable volume. One-third of companies surveyed said improved customer/client satisfaction would be part of improved ad hoc payments.

Additionally, 6 in 10 enterprises sending tips and payments to employees and gig workers will pay fees to use instant payments.

The greenfield opportunity for instant payments to be part of a business’s payment options — depending on the use case — looms large. As many as 30% of these types of payments are made to individuals, and roughly a quarter are made to other businesses.

To that end, and as part of a slew of new tools being launched by J.P. Morgan for small business clients, firms can opt for real-time payments on a pay-as-one-goes continuum. Chase participates in both real-time payment rails operating today: the RTP® network, via The Clearing House, and the recently launched FedNow® Service.

Pay as You Go

Chase said Wednesday (May 1) that it is offering real-time, same-day and standard ACH payments without a flat monthly fee. Chase’s own data noted that 54% of business owners said they would change banks to one that sends same-day or real-time electronic payments. Most companies — at about 70% — would prefer not to send paper checks to cover their payments.

The Pricing Structure

Jameson Troutman, head of product for small business at Chase, told PYMNTS that in terms of pricing, same-day and real-time fees are 1% of the value of the transaction with a max charge of $25 per transaction. He added that standard ACH fees are $2.50 for each payment up to 10 transactions per month, and then $0.15 per payment above the 10-per-month transaction threshold.

“Customers need only to enroll once,” Troutman told PYMNTS, adding that the per-transaction construct helps firms “best manage their cash flow and make the best choice for their business with each transaction.”

Chase customers have logged 60% year-over-year growth in transaction volumes, he said. Active users of the faster payments options have surged by 35%.

Asked by PYMNTS about use cases and verticals that have shown strong use of faster payments, he said that the gig economy and transportation industries have found that real-time payments “can become an incentive to encourage people to work with your business versus others.”